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  • Profile photo of Playa ChickenPlaya Chicken
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    March 1, 2009 - 8:34 pm

    A removal (shift there) type house sounds like you're on the money – depending on what you can find closeby and how much renovation it may need.

    Check the council rules regarding any re-building that may be needed after the place has been moved.  I've been caught out on doing a removal once before and had to virtually rebuild the whole thing due to council requiring various parts of the structure  to meet the new building code.

    So if you do go down this route, be sure to check the potential house with the local building inspector BEFORE you buy it and have it trucked in place!!!

    My experience is that a "shift there" house price should be no different to a "built there" one.

    Vicky.

    Profile photo of Playa ChickenPlaya Chicken
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    March 1, 2009 - 8:22 pm

    Is it possible to install insulation in the roof  from the inside?  Even thin styrofoam type insulation would be better than nothing. 

    Can you post a link to the insulating paint for us?  I'm interested to read what they have to say about this stuff!!!

    Vicky.

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    March 1, 2009 - 8:18 pm

    Let us know how you get on with your offer Rubberducky.

    Vicky

    Profile photo of Playa ChickenPlaya Chicken
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    March 1, 2009 - 8:17 pm

    I'm speaking only of NZ here ….

    • Less people flooding to Ozzie
    • Foreign immigration to NZ is still positive
    • Kiwis returning home due to world economy

    I'm finding a lot of properties that are $50+ a week positive cashflow.

    For example:  I  have 2 x 3-bed properties on a freehold cross-lease title available for NZ $282K  (AUD $221K).  Rents are $535/week for the pair.  With 80% gearing and funded at 6.5% interest rate for 5 years (standard Bank mortgage) they are $60 positive a week on P&I or $129 a week positive on interest only.

    So, even if rents pull back by $30 a week per house, this property is neutrally geared on P&I.  

    As Warren Buffet would say:

    Be fearful when others are being greedy
    Be greedy when others are being fearful.

    Greedy Vicky!!

    Profile photo of Playa ChickenPlaya Chicken
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    March 1, 2009 - 8:07 am

    I've not noticed main roads as having any lower prices than back streets.  Probably your perception because it's not what you'd like. 

    Ask some rental managers what they think in terms of rentability.

    Vicky

    Profile photo of Playa ChickenPlaya Chicken
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    March 1, 2009 - 7:15 am

    I'm of the "buy now" camp if it is already positively geared, it's only going to get better as rents rise.

    The problem with waiting for interest rates to drop further is how will you know when they've bottomed out?  You wont' know until they start going up again .   Same for house prices.

    I reckon if it's positive today, BUY.

    Vicky

    Profile photo of Playa ChickenPlaya Chicken
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    March 1, 2009 - 7:07 am

    Personally, I think "offers over" and "neg over" is just "Agent Speak" for my vendor has over-priced this house and not listened to me or the market, OR, the agent has no clue what price it should be at to sell.  Maybe the vendor is just testing the market to see if someone will bite at a ridiculous price.

    If a property is that over priced, wait until the vendor has had a few reality checks (low offers) and/or got a bit more motivated.

    In NZ, legally the agent has to present ALL written offers, so if I rock up to my local REA with a totally silly offer they must present it to the vendor.  BTW, I always write my own offers.

    You must remember, and feel free to quote this to your general idiot agent …. "IT'S NOT MY PROPERTY, IT'S NOT YOUR PROPERTY MR. AGENT, IT'S THE VENDOR'S HOUSE AND THEY ARE THE ONLY PERSON ABLE TO MAKE A DECISION ABOUT WHAT THEY ARE WILLING TO SELL IT FOR"

    another tack….

    "IF THEY'RE NOT HAPPY WITH THE PRICE I'VE PUT ON THE OFFER, ASK THEM TO COUNTER OFFER MY FIGURE".

    If it's an investment property being advertised like this, the best thing you can do is ignore it.  There are a lot better deals to be found than wasting your time and energy (and paper) on people like this.

    Have fun
    Vicky

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    March 1, 2009 - 6:59 am

    I wouldn't have any hesitation buying a RENTAL on a main road, especially beachfront.  Not sure what is putting you off the idea. 

    Millions upon millions of people are more than happy to live in noisy main road locations, near train stations, with train tracks right behind their houses, on motorway feeder roads.

    Maybe give us some idea about your problem with main roads.

    Vicky

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    March 1, 2009 - 6:51 am

    How about some good old insulation?  Pink batts?  Wool?  Styrofoam even?

    I can't imagine that paint would have much in the way of insulating qualities!!! 

    Kinda scary to think that in such a hot climate as Ozzie someone has built a house with zero insulation.  I lived in Canada for a number of years and we had masses of insulation in the houses because it was cold, and I maintain the same should be true for hot climates, with insulation needed for the reverse reason. 

    Vicky

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    March 1, 2009 - 6:47 am

    Once you've confirmed your agent is actually doing something to get the place tenanted, how about advertising it with "ONE WEEK FREE RENT"?  Better to get someone in now and give away a week than have it vacant for another month or more.  You may also find you can maintain your higher rent by giving a free week.

    In NZ we have property managers that ONLY manage property and are not attached to real estate companies.  Personally, I've found these outfits to be a lot more focused and on their game than the real estate rental managers.  You might want to do some research to see if there is such a service locally.

    Good luck,
    Vicky

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    February 27, 2009 - 11:46 pm

    Sad, very sad.

    But, we've"made our own nest voting these idiots in that are happy to provide all the handouts.  It's no different in NZ, just slightly racially skewed, but no different.

    How sad, the children being born to these people really have absolutely NO chance.

    Vicky

    Profile photo of Playa ChickenPlaya Chicken
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    February 27, 2009 - 11:37 pm

    Read this and listen to the interview (click on radio) …..  http://www.thegreatbustahead.com/ 

    From the website…

  • 2008 was the victim of a self inflicted sub-prime financial crisis. This has nothing to do with the demographics based massive depression that is yet to come, as described in the book. The sub-prime consequences are however very similar though mild so far compared to what is coming our way. The book clearly spelled out that along the way unpredictable short-term (1 to 3 years) disruptive events could happen. The sub-prime crisis is just that. It should be regarded as the “warmer upper” or “hors d'oeuvre” for the big one that is now rapidly closing in on us all.

  • The great unknown at this point is whether the sub-prime based crisis will drag on beyond 2009 and then blend into the demographics based massive decline which, per the book, could begin as early as 2009-10. Being short-term by definition, this period is totally unpredictable.

  • There is the strong possibility that we will see an interim recovery manifested as a “last hurrah” rally in 2009 of perhaps 30% on the Dow after a new low of around 7,000. However, this is very speculative. The only historical certainty is that in the long-term the Dow always returns to the demographic. This lends some credence to such a rally as the immutable demographic, as you can see from the chart, remains in a very strong upswing as it moves toward its 2012 peak before crashing. Also waiting in the wings ready to surge back into the markets are trillions of dollars earning very little in money market funds"

    2011 might be conservative!!

    Batten down the hatches boyz and girlz,
    Vicky 

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February 27, 2009 - 11:26 pm
skuz wrote:

Ok, so it seems like the general consensus is that property prices will fall marginally or perhaps stay stagnant for the near future. I guess all the "success" stories I read in API magazine about people acquiring 10 properties in 5 years is probably gone for the time being. But is it truly that gloomy?

Well, that's NOT what I'm seeing across the ditch in NZ.  Yes, we've had some price falls, but that's been happening for the past 2 years, it's not last week's news! 

From the amount of people signing up to my "Deals To Order", I would say there will be a LOT of investors buying 10 properties in the next 5 years. 

Prices have come back, up to 20% in some NZ towns, interest rates are the lowest we've seen for years with further drops predicted and rents continue to rise.  Sure, money is harder to get that it was a couple of years ago, but people able to get finance are getting some great CASHFLOW POSITIVE deals. 

I am regularly finding good 3-bedroom  houses in good neighbourhoods returning 9% or more, and you can get a 5 year bank mortgage in NZ at 6.5% today.  March 12th is the next OCR announcement in NZ, and rates are expected to go DOWN again. 

So…. as Warren Buffet would say 

Be fearful when others are being greedy.

Be greedy when others are being fearful.

From what I'm seeing here, it's time to be GREEDY!!

Happy investing,
Vicky

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February 26, 2009 - 8:19 pm

Best thing you can do is go and sit down with the local planning department and ask them these questions.  They are the people who will be making the decisions about what you can and can't build on the land, so best find out from them.  Ask them what an "estate development' is.

I would be horrified if councils are saying you can't rent a house!  Who lives in the property after the house is built and whether you collect money from someone for the privilege really is none of their business.

So, a trip to the Humpty Doo council is what you need to do.  Go armed with as many questions as you can think of and get this resolved "from the horses mouth".

Good researching,
Vicky

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February 26, 2009 - 9:11 am

I'm in New Zealand, but the houses on Hill street in Coona look really nice to me.  Lovely tree-lined street, big sections, lots of trees on most sections, pretty barron looking though, not much activity or people or cars around ………………

…… use the fantastic resources at hand –>> GOOGLE MAPS     and search on Hill Street, Coonabarabran.  You can even search on the actual house number and look at it from the roadside!  The internet truly has some MAGIC features!!

Have fun!! 

Vicky

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February 26, 2009 - 9:02 am

Have you spoken with your lawyer and accountant about this?  Maybe better to put the house in a family trust to protect BOTH of you.

Vicky

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February 22, 2009 - 6:30 am

Joe, be very very careful putting any property in your own personal name.  If you are ever sued for anything, your property will be the first thing the other side's lawyer is eyeing up!!  Best it NOT be in your personal name, because you just never know what is likely to happen in the future.  That is why trusts were set up, to protect people's property!!  Yes, life is a risk, but why take risks when there are other better options?  I'm getting more and more risk adverse the older I get and the more stuff I accumulate.

In NZ, we have the "Department of Building and Housing" where you can go and find out what type of properties are renting in your area and for how much.  Another place you could try is all the local rental management companies – ask them what type of houses they're renting, what the demand is like, how much they're getting, etc.  That should give you a picture of what is in demand and what is needed.  No point building a 2-bedroom flat if there are 50 vacant 2-bedroom flats in town, right?  But if there is a shortage / demand for a specific type of housing, that's what I'd focus on.

Keep up the good work.
Vicky

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February 22, 2009 - 6:03 am

Joe,

I'm thinking a target audience would be good, esp. if you are going to have more than say 2 flats in the complex, i.e. you wouldn't want little old ladies mixing with gang members or families with kids yahoo-ing all day.  I've found it's very important to get the people-mix right if you've got more than a couple of flats close by. 

As for owning, I'd find a top notch lawyer and accountant that you trust implicitly with your life and and that you're going to have an ongoing business relationship with for years to come.  Have the land and buildings in a trust NOT owned by yourself, but which you are the beneficiary of only and make the lawyer/accountant the trustees with signing authority. 

As your father has "given" you the land, if I was you I'd take control of it.  It might be all love-and-cuddles now, but watch out if something goes wrong or not as dad would have liked!!!  I reckon that if it's yours, you need to officially make it yours.

Sounds like you've got lots of research to do Joe.

Cheers,
Vicky

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February 20, 2009 - 9:20 pm

What is the rental market like in Humpty Doo?   (great names you Ozzies have for your towns btw!!!!) 

What is your target audience for these flats?  students?  elderly?  single mums?  families?

It's a simple numbers game, how much rent will you get for the knock-up 2-3 beder vs. the nice kit home? 

What ype of properties are in demand in Humpty Doo? 

Is there a shortage of 3-beders? 2-beders? 1-beders?

An acre is a lot of land, should you be building a block of flats?  You could plan for three blocks of two flats joined together with garages or carports and build them over time, i.e. get one block up and running, then build the next, and the next.

If you want to leverage (take a loan) on the land, then it would  probably be best in your trust's name.  Check that with a good accountant and lawyer first.

All the best with your adventure.

Vicky

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February 14, 2009 - 4:08 am

I'm all for licensing property managers if it improves the investor's experience.  Maybe licensing them will weed out some of the shonky operators too!

Vicky

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